Terry Smith to launch sustainable equity fund

(Update) Terry Smith's is gearing up for a third fund launch, which represents a major shift in his mindset, Wealth Manager can reveal.

According to the Financial Conduct Authority, Fundsmith registered the Fundsmith Sustainable Equity fund on 7 September under the Ucits structure as an investment company with variable capital.

With base details only available at this early stage of its life and Fundsmith declining to disclose any further information to Wealth Manager, it is unclear what exactly the fund will invest in.

However, its branding offers a big sign that it will target companies with positive influences on the environment and society.

It is also not clear who will run the fund but given the relatively small size of the firm's investment team, it is likely Citywire AAA-rated Smith (pictured) will play a major role.

The new sustainability fund suggests a big change in Smith's attitude towards the planet.

This shift emerged two years ago when Smith said in a personal blog he intended to stop airing his climate change scepticism, which he had referred to as 'the quasi-religious belief that there is manmade global warming.' The blog has since been taken down.

'I have come in for some vituperative comment and action from ‘warmists’, Smith told theGuardian at the time.

'The media on climate change is so biased it would be laughable if it weren’t for the fact that the subject and the waste of scarce resources on cons which pose as solutions are quite serious.'

Speaking at a conference before the move, Smith described Mauritius as 'very well placed as a financial centre due to a combination of factors. In terms of time zone it is well placed for dealing in Asian markets'.

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